Jobs Report Is strongest Since the Recession (Headline From NY Times)

There has been an unexpected improvement, as officials say, on the domestic economic affairs of the United States; as the analysis of the last month’s report reveal there have been a kind of “rebuilding” in the American work force which had gone through a lot since/due to the last economic recession starting two years ago. In this regard, according to what government said on Friday, the report also demonstrated that only 11000 jobs eliminated last month and therefore the unemployment rate decreased 0.2 percent to a percentage of 10, the highest unemployment rate in 26 years, and that actually is the best news in two past years.

President Obama during his visit to Allentown, Pa, gave hope to his audience when he said: “there are going to be some months where the reports are going to be a little better, some months where the reports are worse, but the trend line right now is good.”

Now, there is prophecy which speculates March as the real turning point during which cutting jobs would replace creating or adding jobs. If by any chance this estimation is true “the beginning of a workforce recovery would come more quickly than after the last two recessions, in the early 1990s and 2001…”.

During the last month according to statistics 50000 temporary workers were hired as well as some permanent workers which are of course low in number. There have been remarkable increases in the working hours, even in manufacturing, and consequently weekly wages rose likewise by nearly two-thirds of a percentage point in a single month. “To $622”. In this regard Nigel Gault asserted: “many companies have reached the point that they can’t extract more work from their existing employees. That means they have to add hours for existing workers or add people. Just how many depends on how quickly the economy grows.” A major means to calculate unemployment, which includes those individuals who were forced to work part time and those who were too hopeless to search for jobs, decreased to 17.2 percent from 17.5 in October. Moreover, job losses in September and October turned out to have fallen to 250000 from preceding 409000.

Republican economist Kevin A. Hassett, director of Economic Policy Studies at the conservative American Enterprise Institute and chief economist for John McCain in his presidential campaign, who is in favor of tax cuts rather that public spending for job creation, contends: “even if you accept their analysis that we are creating jobs this year, when you remove the stimulus you are going to destroy jobs.”

Based on Louis Uchitelle’s opinion during the first months of recovery in the work force, with the hiring and all, 18 million individuals will be competing over vacant places and thus this will create a hot, hard situation, for even a healthy economy is capable of creating 300000 jobs within a month.

Given all these information, readers have to be careful not to miss the fragile point that there is one other condition to consider recovery and that is the degree of credit those who hold the capitals or big businesses are supposed to entrust to the awakening economy. This latter element will make a thorough and healthy circulation of money and refresh the economy.

Louis Uchitelle, 5 Dec, 2009, Jobs Report Is Strongest Since the Start of the Recession, NY Times.